Cryptocurrency and Bitcoin Favoured by Indian government post Financial bill 2021

The Indian government has clarified the concerns regarding cryptocurrency and Digital Rupee
  • The Indian government has clarified its position in cryptocurrency and nation’s digital rupee
  • Indian central bank is researching the needs to issue CBDC in the country
  • The country wants to put a control on the use of cryptos for financial illegitimate activities and payments

The Indian government is proactively ushering in the digital economy. On Tuesday, the Indian Parliament’s upper house, the Rajya Sabha, clarified its cryptocurrency position and the nation’s digital currency. The Indian Ministry of Finance has clarified the concerns of the Indian crypto industry. According to the Indian crypto industry, the clarification is positive and that the government is unlikely to impose any ban on digital currencies. It is also known that the government will come up with regulations and policies, to put control of crypto scams and let innovation in the industry.

Source: Indian Parliament, Rajya Sabha.

India has clarified its cryptocurrency position

On Tuesday, Rajya Sabha answered a list of questions regarding cryptocurrency and the nation’s digital rupee to clarify their position. The question list was entitled as the “Introduction of India’s own cryptocurrency”. A member of Indian Parliament asked the Ministry of Finance whether the government is aware that some Indian institutions are using cryptos for international transactions over the last year. Shri Anurag Singh Thakur, the Minister of Finance, denied the first question of international transactions. 

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Moreover, the Indian government has clarified that it does not consider any kind of cryptocurrency as a legal tender or coin. The government can also take all the necessary steps to eliminate the use of such digital assets in illegal financial activities or as a payment system. 

Indian central bank is exploring CBDC need in the nation

The finance minister was also asked regarding the possibilities of issuing the nation’s digital currency. To clarify the concern of digital rupee, the finance minister revealed that the government would explore the use of blockchain technology. However, the Reserve Bank of India (RBI), the Indian central bank is found exploring the need to issue a central bank digital currency (CBDC) in the country.

Will India ever completely ban digital currencies?

According to Nischal Shetty, the CEO of WazirX noted that the government is more focused on curbing unlawful activities and payment systems. Following the clarification provided by the finance minister now, it is more confusing whether there won’t be a complete ban on cryptocurrency. According to the CEO of Unocoin, an Indian crypto exchange, it now seems that the government is moving towards a favourable path for the crypto industry. 

According to Kumar Gaurav, CEO of Cashaa, the government will require that level of technology and control for a complete ban on cryptos. However, as cryptos are on a decentralized system, no government can completely ban it, although the legitimate uses can be prohibited.

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Ahtesham Anis
Ahtesham Anis is a Computer Science undergrad student currently based out of India. Coming from the business background and his keen interest in Cryptocurrency and Blockchain technology is what Ahtesham brings to the table. He is always an eager learner when it comes to exploring the new technologies and topics in the crypto world.

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